Criteo (NASDAQ:CRTO) and fuboTV (NYSE:FUBO) Critical Review

Criteo (NASDAQ:CRTO) and fuboTV (NYSE:FUBO) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Institutional and Insider Ownership

94.3% of Criteo shares are owned by institutional investors. Comparatively, 39.3% of fuboTV shares are owned by institutional investors. 1.5% of Criteo shares are owned by company insiders. Comparatively, 5.3% of fuboTV shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Criteo and fuboTV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Criteo	3	3	6	0	2.25
fuboTV	1	2	6	1	2.70

Criteo currently has a consensus price target of $22.65, indicating a potential upside of 53.04%. fuboTV has a consensus price target of $16.83, indicating a potential upside of 90.36%. Given fuboTV’s stronger consensus rating and higher probable upside, analysts plainly believe fuboTV is more favorable than Criteo.

Valuation & Earnings

This table compares Criteo and fuboTV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Criteo	$1.94 billion	0.37	$144.60 million	$1.97	7.51
fuboTV	$377.20 million	0.71	-$18.87 million	($1.28)	-6.91

Criteo has higher revenue and earnings than fuboTV. fuboTV is trading at a lower price-to-earnings ratio than Criteo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Criteo and fuboTV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Criteo	5.60%	14.33%	8.05%
fuboTV	-0.71%	-7.67%	-1.33%

Risk & Volatility

Criteo has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, fuboTV has a beta of 2.41, suggesting that its stock price is 141% more volatile than the S&P 500.

Summary

Criteo beats fuboTV on 8 of the 14 factors compared between the two stocks.

About Criteo

Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.

About fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.